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CANADA; 
{849 v0 1859. 


RB a > 
THE HON. A. T. GALT, 


FINANGH MINISTER OF CANADA, 


QUEBEC: 
PRINTED AT THE CANADA GAZETTE OFFICE. 


1860, 


CANADA: 


1849 ro 1859. 


BY 


THE HON. A. T. GALT, 


FINANCE MINISTER OF CANADA. 


QUEBEC; 
PRINTED AT THE CANADA GAZETTE OFFICE. 


1860. 


aye 


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| of Canada, during the past decade, advantage has been taken of 
| the opportunity to correct some inaccuracies which had inad- 


| vertently been permitted to occur in the first issue. 


j features of Canadian progress, without attempting to enlarge 
| upon details. Many subjects of considerable importance have 
j necessarily been passed over, and he can only express his satis- 


j faction that the public has been kind enough to treat the publica- 


In issuing another edition of the following sketch of the progress 


The object of the writer has only been to give an outline of the 


tion with so much indulgence. 


Quebec, Ist March, 1860. 


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CANADA: 
1849 TO 1859. 


4 
i 


| The history and progress of ‘ the Colonies of Great Britain must 
aturally be a subject‘of deep interest to the people of England, 
aspecially since the experiment has been fairly tried of entrusting 
ese dependencies of the empire with local self-government. 


k 
| On the one hand, it was contended that: constitutional govern- 
ent. could: nat be safely entrusted. to colonists.; while, on. the 
Other, it was as.strongly urged.that the institutions under which 
sreat Britain had_ herself. attained a position of such power, and 
gminence, were capable of being, worked. by her subjects. every- 

here; and. that. the vast. resources of her colonial possessions. 
would be far more usefully developed by giving. their people the 
¢ntire control of their own affairs. 


In no part of'the colonial empire has the experiment received'a 
fuller- or- fairer trial than-in Canada ; and it'cannot but be inter- 
sting: to review the progress: of that country, and to mark how 
ar-its- inhabitants have -worthily exercised the power conceded to 
hem. Because, if it could be shown that evil’ had: flowed: from- 
he concession of self-government in.Canada,.it might well shake 
the.. confidence of .those who. desire to give the people. of England. 
themselves.a: larger. share in.the government ofthe empire, as.the. 
same. objects are equally. sought.in,both countries, and the greater: 
the measure. of reform. granted in England, the greater identity 
till. be produced with the state of things.in Canada, where the: 
Rovernment of the country necessarily, rests:almost wholly upon, 
he popular. element. 


6 


I propose to give a brief reswmé of the principal subjects which haws in ; 
have, within the last ten years, been before the Legislature of p entire 
Canada, leaving the statesmen of England to judge how far the | have, 
blessings of free institutions have been appreciated or abused by Canada 
their colonial brethren. But before proceeding to do so, it may because, 
be well to give some slight sketch of the position of public affairs bpplied to 
up to 1849. | 
| The pre 
previousl 
lincurred 
success 
interests 
ichange p 
‘found her: 

and depre 


It is not necessary to do more than advert to the fact that serious _ 
disturbances of the public peace had occurred both in Lower and * 
Upper Canada in 1837-8, and that in 1840 the Union of these two | 
Provinces took place. For some years succeeding the Union, an 
unsettled state of things continued, marked, however, by gradua 
concession to the demand for self-government, until 1846, when | 
Lord John Russell, then Secretary for the Colonies, first fully 
admitted the principle of what is termed responsible government, directly t 
and required that the affairs of the country should be administered } .. ,arked 
by advisers of the Crown, possessing the confidence of the people, | of the dist 
and in harmony with their well-understood wishes. The system } ¢,c¢ the 
thus fairly inaugurated, in 1849, may be said to have received its | \ hich tin 
final and conclusive acceptance, both by the mother-country and j tical ques 
the colony, as from that date no attempt has ever been made to } jhe count 
interfere with its free and legitimate operation. The political | 
differences and difficulties of Canada have been dealt with by} Under 
her own people and Legislature, and Great Britain has never } fact that 1 
been required to take part in any local question whatever, except | affairs ; 
to give effect, by Imperial legislation, to the express desire of the | vigorous 


Tm 


eet 
i natn 
° 


Provincial Legislature. | and resto 

In 1846, England may be said to have fairly abandoned the | hitherto t 
colonial system of trade, as in that year the corn laws were | her colon 
repealed, and the productions of Canada generally placed on the | the polic; 
same footing as those of foreign countries. It was not, however, | she ceas 
till 1848, that the differential duties imposed by the Imperial | of others 
Legislature upon importations into Canada were repealed, and | ¢? ist 
the Province permitted to import whence and how she pleased, | 224 suc 
which was still further promoted by the repeal of the navigation | COUT: 


\ 


ON eS LS RS ee 


7 


subjects which ‘laws in 1849, since which date Canada has enjoyed the privilege 


» Legislature of | f entirely controlling her own trade, and her own customs dues. 


pe how far the have, therefore, taken the year 1849, as that when, politically, 
pd or abused by Canada was entirely entrusted with self-government, and also 
> do 80, 1t may because, at that date, the principles of free trade were fully 
bf public affairs applied to her. 
he sehabiatious ; The protective colonial system of Great Britain having been 
in Lewes end ‘previously the settled policy of the empire, the province had itself 
Aaet theae nes jincurred very heavy liabilities upon public works, dependent for 
r the Union. an ween OPO? its continuance, and many other commercial 
waniggenenn dual interests had also grown up under it. The sudden and unexpected 
itil, \ -, r celen jchange produced very serious disasters ; and in 1849, Canada 
‘es en full ‘found herself with an exhausted exchequer, a crippled commerce, 
’ Y ‘and depreciated credit. Apart from these financial difficulties, 
phe ubietaeebeatad directly traceable to the altered policy of Great Britain, it must be 
e administered j remarked that the country had scarcely recovered from the shock 
> of the people, jof the disturbances of 1837-8 ; that the Union had brought face ta 
| The System / face the opposing influences of English and French Canada, 
ve received its | Which time had not yet mitigated ; and that the most serious poli- 
er-country and / ticg) questions, both affecting the social and material prosperity of 
been made to | the country, had to be dealt with. 

The political | | 
dealt with by | Under such depressing circumstances, the only hope lay in the 
itain has never | fact that the people had at last the management of their own 
latever, except | affairs ; and with a country abounding in natural resources, a 
s desire of the | vigorous and self-reliant effort would yet overcome all obstacles, 

| and restore, upon a more healthy basis, that prosperity which had 
bandoned the | hitherto been sought through favours granted by Great Britain to 
her colonies, at the expense of her own people. Canada accepted 
the policy of England as necessary for the welfare of the empire : 
she ceased all applications for aid to be granted to the detriment 
of others ; and she has applied herself to the task of developing 
her institutions and her resources with a vigour, determination 
and success, that have rarely, if ever, been witnessed in any other 
country. 


orn laws were | 
placed on the | 
s not, however, | 

the Imperial | 
repealed, and | 
w she pleased, | 
he navigation | 


8r 


In: proceeding: to.review the. great-progressive-steps that;Canada. 


has. made: between. 18490. and. 1859, . I, shall, . in, the. first place, 
‘advert to those which concern its social and moral government ; 
-afterwards; those whiich‘afféet its material’ progress ;- and: finally, 
-«démonstrate:the result. as: viewed through: the operation of its 
trade: 


In accordance with the provisions of the Imperial statute, 
establishing: the: constitution: ofthe country; the Legislature con- 
sisted, under: the Governor-General, of; a: Legislative Couneil, or 

*Upper: House; nominated for life: by the: Crown; and: a Lower 
House; elected by: the people:. The: rapid: settlement: of: the 
country, especially: of the more newly: opened: districts, soon: 


rendered the original allotment: of eighty-four: members: for: the | 
Lower: House: insufficient, and: this: evil: was:reformed in: 1863, by 


aw increase of the representatives to 130 members:' The franchise 
has also: been: reformed: and: extended; the qualification: now being: 
$0 dollars:per-annum; or £6 sterling; for freehold: or tenantry: in 
towns, and-20:dollars, or: £4: sterling, in rural: districts ; ‘the: prin- 
cipal feature inthe change: being the admission of the: tenant: vote 
in: the counties-and rural: districts; 


The original election law allowed an; almost: unlimited, time for 
elections, often producing great violence, and provided no checks 
upon ‘voting except: oaths——while: the trial: of -elections- was: both 
tedious: and uncertain.. This has been wholly reformed by: limit- 


ing. the: duration of an: election: to:two:days, by providing ‘for a. | 


perfeet ‘system of registration of votes, and by: the-enactment of an 
improved’ system :for the: trial: of contested elections: 


The. Legislative Council, or Upper House,, has also been 
reformed. by. the. introduction of. the elective. principle—the existing 
nominated members retaining their seats for life. The: Province 
has been. divided into forty-eight electoral divisions, each returning 
one: member, Twelve. are elected every. two years, and they go 
out of office after eight years’ service. The House is not subject: to 
dissolution ; and it is expected that the result will be to establish 


a. body it 
‘Apolitics; 


4 nots of t 
may be 


4 The; pr 
inately fo 
Fin 1849 ; 
‘difficult ¢ 
Esettled:. t 
4 Queen, i 
} the: city;¢ 
4 of erectia 


3 ©Perhay 
4 of constit 
9 ance. of. 
” The: gene 
@ jects, anc 
measures 
4 have, the 
@ efforts. h 

and cou! 

Canada. 
@ the Unic 
} Canada 
i Special 
4% the inte 
@ of seve! 
@ failure. 
a was es 
f similar 

for Lov 

the abs« 

burdens 

more pt! 


ps that:Canada. 


Ce;. 


the. first i 

government ; 
+; and: finally, 
eration of its 


perial statute, 
9 islature con- 
e Couneil, or 


ement: of: the 


lon: now: being: 
r tenantry: in 
cts ; the: prin- 
he: tenant: vote 


nited, time for 
ed no checks 
ns- was: both 
med'by: limit- 


roviding for a. | 


actment of! an 


s also been 
—the existing 
‘he: Province 
ach returning 
and they go 
ot subject: to 
> to establish 


9: 


ja. body ina: great dégree: secured’ from the ordinary: excitement of 
‘politics; and‘ able to ‘take a.calm:and : dispassionate: review: of: the: 
acts of the Lower: House, which: is: elected: for. four: years, and: 


ay be:disso! ved ‘by the: Governor General. 


The: practice of holding: the, sittings: of: the. Legislature, alter- 


jnately for:four: years in; each.section. of. the Province, commenced: 
Jin 1849 ; and after a:long.and, protracted struggle, this.extremely. 
(difficult question, essentially of a sectional character, has been 
ali Haeuas settled. by: the adherence. of. Parliament: to. the decision uf the 
7 Queen, in-the selection as the permancnt, seat of government of. 
itatibake: bois j the: city: of Ottawa, where the. public. buildings are now in course 
nbers: for the | of erection. 
od in: 1863, by. | 


The: franchise. | of constitutional government, is to provide for the complete. sever- 


# ance. of. local. legislation from that.affecting the people at large. 
4 The general. Legislature can never properly deal with such. sub- 
@ jects, and their introduction tends to distract attention. from: those 
7 measures which are of general interesi. 
@ have, therefore, received much. attention in Canada, and constant: 


Perhaps.the most important step. required for the. perfect: working 


Municipal institutions. 


efforts. have been made to perfect them, and to give each parish 


§ and county. the control of its own internal affairs. In Upper 


Canada.a system of municipal local, government existed prior.to 


# the Union; but it was in a crude and inefficient form. ‘In. Lower 
i Canada the attempt was made to introduce the. system by. the 
4 Special Council, which replaced the ordinary Legislature. during 
i the interregnum following the rebellion ; but, with the exception 
@ of several of the English.counties, the effort proved a complete 
q failure. 
7 was established, in Upper Canada ;. and in 1850, a measure of. 


In 1849, a.complete system, of municipal organization. 


similar tendency, but differing somewhat in. detail, was passed 
for Lower Canada. In both sections much evil. had arisen from 
the absence of all.power to levy local rates for local objects ;. and 
burdens were thus thrown upon the general revenue, which. were 
more properly chargeable on the localities interested. 


10 


The system thus inaugurated, was from time 'to time amended, 
as circumstances showed the necessity, until finally, in 1858, the 
whole of the laws relating to municipalities in Upper Canada, 
were revised and consolidated into one statute. A similar 
measure has likewise been prepared for Lower Canada, and was 
distributed througho.' the Province during the last Session of the 
Provincial Parliament, ,reparatory to its being considered and 
finally passed in the sessio: now approaching. 


The general features of the municipal law of Upper Canada, 
and which, with some modifications suited to the different state 
of suciety in Lower Canada, may be stated as the system in force 
throughout the Province, are : 


The inhabitants of every county, city, town and township, are 
constituted corporations, their organization proceeding wholly 
upon the elective principle ; and provision is made for the erection 
of new municipalities, as the circumstances of the country require, 
by their separation from those already existing. A complete 
system is created for regulating the elections, and for defining the 
duties of the municipalities and of their officers. Their powers 
may be generally stated to embrace everything of a local nature, 
including—the opening and maintenance of highways ; the erec- 
tion of school-houses, and the support of common and grammar 
schools ; the provision of accommodation for the administration 
of justice, gaols, &c., and the collection of rates for their support, 
as well as for the payment of petty jurymen ; granting shop and 
tavern licenses ; regulating and prohibiting the sale of spirituous 
liquors ; providing for the suppoit of the poor ; preventing the 
obstruction of streams ; effecting drainage, both in the cities and 
country ; inspection of weights and measures ; enforcing the due 
observance of the Sabbath, and protection of public morals ; 
establishing and regulating ferries, harbours, markets, &c. ; 
abating nuisances ; making regulations for, and taking precau- 
tions against, fires ; establishing gas and water works ; making 
police regulations ; levying rates upon all real and personal pro- 


se 


Saas 


. perty, i 


me 


Se 


Sota 


) all poss 


borrowi 
essentiz 


The jt 
going 1 


vation 
but in t 
district 
general 
local q 
matters 
rejectin 


Pass 
the mod 
munici 
regard 
bearing 


The 
parts. 
instruc 
second 
univer: 


Asr 
Upper 
1846, | 
tenden 
the gri 
to the 
Europ 
operat 
inquit 
whicl 


ime amended, 
y, in 1858, the 
pper Canada, 
- A similar 
hada, and was 
Session of the 
sidered and 


pper Canada, 
lifferent state 
stem in force 


ownship, are 
eding wholly 
pr the erection 
ntry require, 
A complete 
t defining the 
Their powers 
local nature, 
ys; the erec- 
ind grammar 
lministration 
heir support, 
ing shop and 
of spirituous 
eventing the 
he cities and 
cing the due 
lic morals ; 
tkets, &c. ; 
ing precau- 
KS; making 
ersonal pro- 


Bs 


11 


7 perty, including incomes for all purposes; and, for certain objects, 


a eT 


borrowing money ; together with a great number of minor matters 
essential for the good government of a community. 


The present municipal system of Canada, of which the fore- 
going is a brief and imperfect sketch, is believed to provide for 
all possible local legislation, and has been framed upon an obser- 
vation of the working of these institutions, not only in England, 


| but in the United States, the result being to secure for each local 


district the most perfect control of its own affairs. Under it the 
general legislature is freed from the necessity of considering any 
local question ; and the people themselves have, in all important 
matters, the opportunity, by a popular vote, of considering and 
rejecting the action of their own municipal representatives. 


Passing from the previous questions, which relate to reforms in 
the mode of governing the country, both generally and through 
municipalities, I will now advert to that which has been done in 
regard to education, which certainly has the most important 
bearing on the future welfare of the country. 


The educational question may be divided into two distinct 
parts.. First. The provision of common schools for the general 
instruction of the people in the rudiments of learning. And, 
secondly. The establishment of superior schools, colleges and 


universities. 


As regards common schools, much attention had been given in 
Upper Canada to this subject at all times ; but it was not until 
1846, that it was reduced to a system. The very able Superin- 
tendent of Schools in Upper Canada, Dr. Ryerson, is entitled to 
the greatest credit for the labour and talent which he has devoted 
to the subject. He was deputed by the Government to visit 
Europe, for the purpose of examining the best school systems in 
operation. And after a lengthened examination, the result of his 
inquiries was finally embodied in several Acts of Parliament, 
which provide for the establishment of schovl districts in every 


12: 


part: of: Canada ; every child: is. entitled to. education ; and/for 
the support:of:thée system, a rate is struck by. each municipality, 
in addition to a contribution: of: £90,000: from the provincial 
exchequer. Each school district is under the management of 


} and, u 
* the las 
» schools 
of com! 


local trustees chosen by the people—who are again subject to 


inspection by officers appointed: by the County Councils, periodical y. Fort 
returns being made to the Superintendent of Education. The | . Prosres 
Superintendent himself is assisted’ by a Council of Instruction, MOR, | F 
chosen from the leading men of the Province, without regard to | with it 
religion or politics. The order of tuition and the school-books | schools 
are settled’ by the Council and Superintendent. Libraries of Upper 
useful books, maps, &c., carefully selected, are also supplied’ at Canadi 
cost’ price to the different municipalities. For the purpose of pro- lands, 4 
viding fit instructors for the common schools, Normal schools in addi 
haye been established in both sections of the Province—both for In bo 
male and female teachers—and much care: is devoted to their, ments, 
effectual training. affiliati 
Permanent provision is also:sought to be-made for’ the: support ihe 
of common schools, through large appropriations of ‘valuable: va 
lands. Cari 
and sé 
The system: of: teaching in Upper Canada is: non-sectarian,. but which 
provision: is made for the establishment of Roman Catholic sepa- Univer 
rate:schools, In’ Lower Canada, owing to. the: population: being with t 
principally Roman Catholic, though the system is also:non-sec- lege, 1 
tarian, yet the education is mainly in the hands of the clergy, and Lowe! 
provision is made for Protestant separate schools, which equally Unive: 
share in all the benefits of the local rates and legislative provision. contril 
The result of this system may be summed: up by:stating that eos 
by the last report-of the Superintendent. of Education for-Upper by the 
Canada; there were in 1858; 3,866 schools, 293,683 scholars. tary c 
In: Lower Canada, considerable repugnance existed. to the, He . 
imposition. ofthe necessary direct:taxation,to maintain the system ; . pare 


but by very. great efforts, this. feeling has been entirely overcome ;, 


attain 


tion ; and;for: 


municipality, 
he provincial 
nagement of 
1in subject to 
ils, periodical 
cation, The 
f Instruction, 
ut regard to 
school-books 
Libraries of 
supplied’ at 
rpose of pro- 
rmal schools 
ce—both for 
oted to their. 


the« support 
of ‘valuable: 


ctarian,. but 
tholic-sepa- 
ation: being 
lso:non-sec- 
clergy, and 
ch equally 
© provision. 


stating that 
1 for-Upper 
holars. 


ted. to the. 
he system ; 
overcome: ;, 


sieiae sda tes 


13 


‘and, ‘under the able: superintendence of the Hon. P.O: Chauveau, 
‘the last ‘report ‘for 1858, shows the following results : 2;800 
igchools, .180}940 scholars,-eontrasting with'an almost ‘total neglect 
of common schools but a few years previous. 


‘For the purpose-of -affording superior education, but little real 


{ progress had been made until after the organization of the com- 


mon school system, when there was established in connection 
with it a higher class of instruction through the means of grammar 


1 schools, which are now very generally to be found throughout 


Upper Canada, and also, to a more limited extent, in Lower 
Canada. These schools are also supported by. grants of public 
lands, and by partial contribution from the common school grant, 
in addition to the local rates. 


In: both sections of the Province, numerous educational establish- 
ments, of the nature of colleges, are established ; most of them in 
affiliation to some of the universities. 


The universities in Upper or Western Canada consist---of the 
University of Toronto, non-sectarian, which is very largely 
endowed by the Province, and which is now in a most. prosperous 
and satisfactory condition. The University of Trinity College, 
which is under the auspices of the Church of England, the 
University of Queen’s College, Kingston, which is in ‘eorneeHih 
with the Church of.Seotland, and the University ‘of Victoria Col- 
lege, in connection with the Wesleyan Methodist ‘Church. In 
Lower -Canada, the Roman Catholics have established the 
University of Laval, which is wholly supported by voluntary 
contributions, and which, though comparatively recent, promises 
to be of the greatest value to the country. The University of 
M’Gill College, originally established: through a munificent bequest 


by the late _Hon. J. M’Gill, and almost wholly supported by volan- 


tary contributions, is non-sectarian, and is now:in.a very flourish- 
ing state. The Church of England have also the University of 
Bishop’s “College, ‘supported ‘almost solely by that Church, and 
“which, though comparatively new, will, it is believed, speedily 
attain'a position‘of great usefulness. 


a 


14 


It would occupy to much space too enlarge upon the course of 
instruction at these institutions, but it may be stated that they all 
contain the usual professors of classics, belles letires, law and 
medicine. 


With the single exception of the M’Gill College, which has 


-whole of these institutions may be said to have risen within the 


University of Toronto existed in another form---as a college under 


the Church of England, for many years, but its usefulness was | 


entirely marred by the constant struggle to free it from its sectarian 


character, which was only effected in 1845 ; from which date it | 
may be said to have risen into its present highly important posi- | 


‘tion. 


‘TP possesse 
jneously 
ending 
yquestio 
Han Esta} 
: : rks Bthe inhe 
long existed, but until very recently in a languishing state, the | ohevil 


f : 4% made, b 
last ten years, and they are mainly, if not wholly, supported by | 


voluntary contributions and endowments. It is true that the — 


The total number of educational institutions in operation in | 


Upper Canada in 1858, was 4,259, attended by 306,386 pupils, 


‘and expending 1,512,386 dollars in their support. In Lower ‘ 


Canada, during the same year, the total number of institutions 
was 2,985, attended by 156,872 pupils, and expending 981,425 
dollars in their support. 


There have been two questions which, more than any others, ’ 


4 to their 


TR, ea 


have agitated the public mind in Canada, and produced the : 


greatest bitterness and animosity. Each was peculiar to its own 4 
In Upper Canada, the Clergy Reserves ; j 
The @ 
former has indeed been regarded by many as the prominent | 
cause of the outbreak in 13837, while the latter has been an | 
incubus of the most fatal character upon the industry and intelli- | 


section of the Province. 
and in Lower Canada, the Feudal or Seignorial Tenure. 


gence of Lower Canada. 


The Clergy Reserves were an appropriation of one-seventh of 
the land of Upper Canada, made_ by the Imperial Legislature for 


the support of a Protestant clergy. They were claimed, and | 


4 renewed 
i that a 
; acting u 


| and pro 
4 ing stipe 
4 for wid 


compro 


plete se] 


and fun¢ 


carried « 


4 an evil ' 


In Le 
upon tl 
by the | 
is fami 
every < 
Civil ir 
of Euro 
many — 
repress 
charact 
in the 
setting 
Canad 
progre: 
duced 


1 the course of | 
od that they all 
letires, law and 


re, which has 


en within the 


m its sectarian _ 
which date it | 


important posi- | 


operation in | 


06,386 pupils, 
tt. In Lower 
of institutions 
nding 981,425 


gy Reserves ; 
Tenure, 


he prominent 


has been an | 


ry and intelli. | 


h any others, | 
produced the ; 
liar to its own 4 


The 


e-seventh of | 


egislature for 


claimed, and | 


15 


; but, étinaie- 
d originally, by the Church of England ; 

femal dt churches asserted their rights, and a never- 

sending ‘agitation was kept up on the subject. It raised the 


3 question of a connection between Church and State, as well as of 


#an Established Church, both being obnoxious to a large class of 


the inhabitants of the Province ; and it proved the fruitful cause 
shing state, the | of evil of every kind. Many unsuccessful attempts had been 


4 made, both by the Impcrial Legislature and by the Colony, to 
, Supported by © ’ 


ee renewed with increased bitterness ; and it was not until 1854, 
college under } that a final settlement could be arrived at. 
usefulness was acting under the authority of an Imperial Act, decreed the com- 


} plete separation of the State from all connection with any Church, 


i ion ; i itation was 
compromise the question ; but in every case the ag 


The Legislature, 


| and provided that a commutation equivalent to the value of exist- 
ing stipends should be paid to the incumbents, and, after taste 
for widows and orphans of clergy, divided the remaining lan 
and funds amongst the municipalities of Upper Canada, Homer 
to their respective population. This measure has been fully . 
carried out, and the Province has at length found a solution for 
an evil that had convulsed it since its earliest settlement. 


In Lower Canada the disastrous effect of the Feudal Tenure 
upon the progress of the people can scarcely be understood now 
by the people of England ; to the student of history, however, it 
is familiar, through its effects in Europe, where its sess in 
every country has been the result of long-protracted struggles. 
Civil insurrection, bloodshed and crime have marked the progress 
of Europe in casting off this burden ; and though stripped of 
many of its worst features in Canada, yet the system remained, 
repressive of the industry of the people, degrading nee in 
character, and effectually precluding Lower Canada from s mee 
in the flow of population and wealth, which was so steadily 
setting in to every other part of N orth America, The Aa 
Canadians had grown up under this system for years ; but the 
progress around them had awakened their intelligence, and_ pro- 
duced that strong movement in the masses which betokened a 


‘I6 


- steady: persistent-effort, at:all “hazards, ‘to ‘free themedlves from'll 


every ‘trace of ‘serfdom. No more difficult .problem could be | 
Offered for solution to.‘a Legislature, than the settlement of:a: ques- | 
tion which had ‘its roots: in the: very fundamental: lawsiof property, | 
and ‘which could :not be approached . without endangering the | 

destruction of the whole ‘social edifice ; ‘and the:difficulty:was-not 


vdecreased ‘by the fact that the ‘body which had.to deal with it | 


eonsisted, to the extent of one-half, of representatives: from sda 


Canada, who: might not unnaturally suppose they had:no ir ame- | 


diate ‘interest in it. This problem ‘has, however, been solved, ; 

and by the Acts of 1854, and of:last Session, the .Feudal Tenure | 
has been completely - extinguished: i in Canada, and: lands are now | 
held by freehold tenure:equally in both sections of the Province. | 


tenure has been abolished, on payment ofa certain amount by 


progress of the Lower Province ; 


that which, more than ‘any athe, has been charged ‘against the | 
‘Government of Canada, as a lavish and ‘wasteful outlay of public | 


‘money. One: single week of ‘disturbance of the ‘public ‘peace | chest, as 


would ‘have ‘eost the ‘Province vastly more than the indemnity | 


“cents, or 


bats 4 fferd 
The rights of property have been respected; no confiscation has | ghabern 
taken place, but, with the consent of all interested,-the obnoxious 1 power o 
Qwith a fr 
each tenant, and bya contribution of about £650,000 from the | 
-Province : generally. A social revolution has thus been quietly, | while th 


‘and without excitement, effected, :at a most trivial cost to the Mand mai 


country, which will be repaid a ‘hundredfold ‘by the increased 4 
and yet this very measure is | 


fi 


given'to‘those whose rights of ‘property ‘were ‘required ‘to »be ‘sur- | 


‘rendered for the public good. 
“working of constitutional ‘Government which should encourage | 
‘its friends, it'is the fact that ‘the people of Canada have ‘been | 
‘themselves ‘able ‘to -approach ‘and deal’ with'such'a question as 
this without excitement, disturbance, or‘individual ‘wrong. 


‘The Settlement:of the country! has‘at: all:times:been:a:subject of | 


<deép:interest‘in' Canada, and has:been promoted in évery possible | 
; Bmni iain’ ef tea ge ‘ @law, for 
‘way. ‘Emiprants are ‘received -on ‘arrival:at the quarantine har- | vere Bos 
‘bour, ‘where hospitals and medical .care are provided free of | y 8 


‘If ‘there be one - point in the whole 


Ms made 


ipharge ; ; 
tion on 
lestituti 


ghem—t 


“etal i 
munities 


onditio 


settlers tl 


The ac 
Mtrict, is 
may be t 


further Ic 
of publi 
splace,. an 
@of road i 


of acres | 
@the publi 


For tt 
and grav 


17 


pharge ; they receive from Government officers reliable informa- 
ion on every point necessary for their welfare. In case of 
lestitution, they are forwarded to their friends ; and every effort 

) @s made to protect them from the frauds and impositions of 
pieced gg ig Hesigning persons, to which they are so mueh exposed at New 
ndangering the | 


ficulty:-was-not § ba 


1to deal with it 7 
ives from Upper | 
y had :no irame- 7 
r, been solved, ; | 


hemsé¢lves :from i | 
oblem could be | 
ment of:a: ques- | 


Leading roads are opened by the Government in the remoter 
parts of the Province, and free grants of land are made upon 
hem---the price of ordinary land in these townships is fixed at 70 

ents, or about 3s. sterling, per acre, for cash, or 4s. sterling (1 
ete Tomure | dollar), if on credit. To enable large proprietors or small com- 
ands are now | 


; Fnunities to establish united settlements, townships of 50,000 acres 
of the Province. Yare offered for sale at 2s. sterling, per acre, for cash, subject to 


onfiscation has 4 onditions of settlement. By these arrangements, it is within the 
, the obnoxious | power of almost every one to become the proprietor of a farm, 


‘tain amount by | with a free title for ever, and subject to no other charges than the 


1,000 from the \ settlers themselves, under the municipal system, choose to impose ; 
s been quietly, while the education law provides for the gradual establishment 
al cost to the and maintenance of schools. 
y the increased | 3 


ry measure is @ The action of the Government in the settlement of a new dis- 
ged against the | 


@trict, is confined to the opening of the leading county road, as it 
putlay of public @may be termed. No further expenditure is made from the public 
‘public ‘peace 4 chest, as the municipal system makes ample provision for all the 
‘the indemnity | further local. wants of the people. Under this plan an expenditure 
ed ‘to ‘be ‘sur- | of public money to the extent of about £15,000 per annum takes 
tin the whole place, and it has produced the construction of hundreds of miles 
puld encourage of road in the interior of the country, rendering accessible millions 
da have ‘been of acres of fine land, which through its sale gradually reimburses 
‘a question ds the public. exchequer. 
“wrong. 


nee 


ee ee 


' § For the construction and maintenance of macadamized, plank 
sete : Gand gravel roads, the Legislature has provided, through a general 
chs ak aaa law, for the organization of road companies. This law has been 
sesresives hier very. generally acted upon in Upper or Western Canada, and 

2 


vided free of | 


ae Sas ae 


ee a ee — 
teacher a en = = ee ee - 
eee Se : = = = =. 


erent, 


ae 


Reece a er 
i nd ASE eee 


eee 


"| 
y 
4 


18 
instead of almost impassable tracks through the forest, the country 


parts. 


The very valuable Fisheries of the Gulf and River St. Law- | 


rencé, as well as of the Great Lakes, have also formed the subject § 


of legislative care ; and in 1858, an Act was passed providing i 


for their protection and proper management. This Act has as) 
yet been too short a time in operation to permit reference to | 
results achieved ; but there can be no doubt that it will be fraught | 
with the greatest public advantage, especially. in the River St. | 


Lawrence, where the fisheries are perfectly inexhaustible, under | 
proper supervision, and where, from the severity of the climate, | 
the inhabitants are mainly dependent upon them. A hardy class j 


of seamen will hereby be provided, and a new source of wealth | 
and trade be developed. 


In attending to the great interests of the people, the Legislature 4 
have not neglected those subjects which now so largely interest | 


philanthropic minds. The care of lunatics has engrossed much | 
attention, and admirable asylums are provided for them, where | 
they receive the most skilful and approved treatment. In Upper | 
Canada, a local rate provides for a large part of the expenditure ; | 
but legislative aid is required to the extent of about £12,500, | 
with an equal sum for similar institutions in Lower Canada. 


As regards criminals, a Provincial Penitentiary receives those | 


to whom a long period of servitude is attached ; they are there | 
taught various trades, and compelled to contribute to the cost of | 
their own maintenance. Their labour is let out by contract to} 
tradesmen, and by employment, and the acquisition of the know- | 
ledge of some handicraft, the endeavour is made to provide them, | 
on their return to society, with the means of gaining an honest} 


livelihood, without the temptation of want to cause their recur-/| 
rence to ond courses. For the reformation of the young, reforma- i, 4) inig 
tory prisons, have been opened within the last year, under an Act @ gif; 
passed in 1858; and by careful and judicious training it is! 


4 hoped f 
is now traversed by excellent roads through all its more settled Jegards 


its pract 


Wgreatly s 


inspecti 
is hd 
nd mis 


Nor h 
since 18 
-R.S. 
already 
ade nc 
ery int 
purvey 
and extd 
ens at 


The 
ontribu 
hat at Q 

i ot, how 
institutic 
Bing evic 


@wholly t 


Amon 
of Cana 
carefully 
English 


respect, 
In Lowe 
and dec¢e 
easy rea 


rest, the country |; 
its more settled 4 


| River St. Law- | 
rmed the subject | 
assed providing | 
This Act has as | 
nit reference to | 
t will be fraught | 
in the River St. | 
haustible, under | 
of the climate, | 


A hardy class | 
source of wealth | 


the Legislature 4 
largely interest | 


engrossed much | 
rr them, where | 
ent. In Upper | 
e expenditure ; | 
about £12,500, | 
er Canada. 


receives those | 
; they are there | 
te to the cost of | 
by contract to} 
bn of the know- | 
0 provide them, | 
ining an honest | 
se their recur-| 
young, reforma- | 
r, under an Act; 
training it is! 


19 


hoped that many juvenile offenders may be reclaimed. 


As 
pgards the prisons generally, by the Act of 1858, a Government 
Wspection, of the most searching kind, has been established, and 
is hoped will be effectual in remedying much of the evil 
nd misery of the indiscriminate confinement of criminals. 


Nor has science been wholly overlooked---Canada having had, 
since 1844, under the able superintendence of Sir William Logan, 
.R.S., a systematic geological survey in progress, which has 
already been of the greatest value to the Province, whilst it has 
ade no mean contributions to the stock of knowledge in this 
ery interesting science. The annual reports of the geological 
murvey of Canada, may be appealed to as evidence of the value 
and extent of the service performed ; while the display of speci- 
ens at the London and Paris exhibitions, amply. demonstrated 


; its practical character. 


The Toronto Observatory is also well known for its valuable 
ontributions to astronomical and meteorological science ; and 
hat at Quebec is also rising into deserved notice. My space will 
mot, however, permit me to do more than notice the fact that such 
tnstitutions exist, and are valued and promoted in Canada, afford- 
Ging evidence that the progress of the country is not confined 
wholly to material objects. 


Among other reforms which have characterized the legislation 
of Canada, during the past ten years, the criminal law has been 
carefully revised and amended ; while in Upper Canada, where 
English law prevails, the proceedings of the courts have been 
greatly simplified, and stripped of technical difficulties ; in this 
respect, fully keeping pace with the legal reforms of England. 
In Lower Canada, the whole plan of judicature has been changed 
and decentralized, so as to bring the redress of legal wrongs within 
easy reach of every one ; while the expenses attendant on the 
administration of justice have, within the last two years, been 
modified and greatly reduced. 


Q* 


yn nee 


i a Cs 


eee a = 
RO eT a Se et ee he a 
ara} eg i= =o 


—— 


Se oe 
= 


he en 
= = + 


20 


The whole statutory law of Canada has been consolidated into | 
three volumes, a work of great labour and corresponding value. § 
For the achievement of this important work, the Province is deeply . j 
indebted to the late Sir James Macaulay, ex-Chief Justice of | 


Common Pleas in Upper Canada, who only lived to see his work, 
and that of his able coadjutors, completed by the issue of the new 


consolidated statutes within the last two months. To have | 
reduced within such compass the entire statutory law of the | 
country since its conquest, is no mean achievement ; and the | 


removal of contradictions and ambiguities in existing laws, is not 
the least valuable part of the work. 


In Lower Canada, a commission is now sitting, charged by 


Parliament with the codification of the French law, after the | 
manner of the Code Napoleon. The work is one of much labour, | 
and can scarcely be completed within less than three years. | 
Canada will then possess, in a consolidated and condensed form, ‘ 


her complete body of law, notwithstanding she has had to deal j Panay 


with two entirely distinct and different systems. 


In the foregoing observations I have only been able very briefly q 
to allude to the more prominent subjects of legislation since 1849 ; | 
there are many others, of a highly important character, which, did § 


my space permit, I would gladly cite in support of my argument 
on behalf of the general policy of Canada ; but surely the system 


cannot be either intrinsically bad, or administered by vicious | 


instruments, which has produced within ten years--- 


A thorough reform of the Legislature ; 

An extension of the franchise, and registraton of votes ; 

A complete system of municipal self-goverment ; 

A perfect system of elementary and superior education ; 
The separation of Church and State ; and 

The settlement of the Clergy Reserve question ; 

The abolition of the Feudal Tenure ; 

Provision for emigration and the settlement of the country ; 


— 


The c 
| The 
) Thee 


g 
The p 


The re 
The si 
The cc 
The cd 


I will 
@uring t 
Mvhich, 
ystem. 


Canad 


Preste 

he disch 
rie, lat. 
pasterly 
rains a 
@matural ¢ 
he State: 
@Michigar 
4 or the §S 
@Michigar 
@rincipal 
Bn its nat 
Wore, the 
Lawrence 


| apids, ¢ 


@eransport 
mall fi: 
perfectly 


onsolidated into | 
sponding value. i 
‘ovince is deeply. j 
thief Justice of § 
to see his work, | 


issue of the new 
nths. 


To have | 
ry law of the | 
ement ; and the | 
‘ing laws, is not | 


ig, charged by 
h law, after the | 
of much labour, | 
in three years. | 
condensed form, * 
has had to deal 3 


rely the system 


P country ; 


@he ocean at the Gulfof St. Lawrence to Lake Superior, the 
vesternmost of the great lakes. 
ble very briefly 4 
ion since 1849 ; F 
ter, which, did @ 
f my argument | 
matural channel to the ocean, not merely for Canada, but also for 
ered by vicious | 


mor the States lying to the west and north-west of the lakes 


Principal part of the cereal crop of America is produced—bulky 
#gn its nature, comparatively low in its value, and requiring, there- 
More, the cheapest mode of transport to market. The River St. 


Fopids, could not, in the early history of the country, be used for 
@ransport, except by the tedious and expensive employment of 
imal! flat boats. 
@erfectly seaworthy, and the laws of the empire themselves inter- 


ps 


@uring the same period, in the direction of material progress, and 


21 


The care of lunatics ; 

The management of criminals ; 

The establishment of reformatory prisons and supervision of 
gaols ; 

The promotion of science ; 

The reform of the criminal code ; 

The simplification of the civil laws ; 

The consolidation of the statute law ; and 

The codification of the French law. 


. 
4 


I will now proceed to speak of the efforts made by Canada 


which, I think, equally attest the beneficial working of our 
ystem. 


Canada occupies a position in North America, extending from 


The River St. Lawrence forming 
e discharge of these lakes, finds its most southerly point in Lake 
rie, lat. 42°; and from thence proceeds in a general north- 
asterly direction to its entrance into the Gulf, lat. 50°. It thus 
rains a vast extent of the interior of the continent, and forms the 


he States of Western New York, Western Pennsylvania, Ohio, 
Michigan, Wisconsin, Illinois, Indiana--and, it may be added, 


This great district is that wherein the 


ichigan and Superior. 


awrence, being interrupted above Montreal by formidable 


The lakes could only be navigated by vessels 


22 


posed insuperable obstacles to the St. Lawrence becoming the 
route through which foreign trade could reach the seaboard. The 


importance of the trade of the country round the great lakes was J 
early seen ; and the construction of the Erie Canal by the State | 
of New York speedily demonstrated, through its success, the | 


magnitude of the prize to be contended for. 


Canada, divided into two Provinces, still more divided by 
having two distinct national races, and fettered by the commercial 
policy and navigation laws of Great Britain, was but ill prepared 
to develop the superior advantages of the natural channel by the 
St. Lawrence. 
construction of the Welland Canal, between Lakes Erie and 
Ontario, on a small.inexpensive scale, by Upper Canada the 
Rideau Canal, made by the British Government for military 
purposes, and the Lachine Canal, built by Lower Canada, proved 
that, even prior to 1830, public attention was directed to the 
importance of securing a share of the trade of the great lakes. 


The wonderful rapidity with which the States bordering on the 
lake-waters filled. up---the rush of emigration from all parts 
towards them--the growth of cities and the extension of com- 
merce, increased the efforts to facilitate communication between 
this district and the ocean. But the wafortunate insurrection in 
Canada of 1837-38, paralysed all her efforts, and years elapsed 
before they could be renewed. The first step was taken under 
Lord Sydenham, in 1841, after the union of Upper with Lower 
Canada, when the Imperial Government granted their guarantee 
for a loan of £1,500,000, to promote the enlargement of the 
Welland Canal, and the construction of canals to obviate the 


rapids of the St. Lawrence, between Lake Ontario and Montreal. § 


These works were vigorously pressed forward ; and the Province 
was still further excited to redoubled effort and increased outlay, 
by the Imperial Act of 1843, which permitted American wheat, 
ground in Canada, to be shipped to England as colonial, thus 


giving an indirect advantage to trade from the United States | 


through Canada. 


necessa 


But still the effort was commenced ; and the J 


The ¢ 
pleted i 
then pos 
to Lak 
Michige 


itself s 
magnifi 
them e 
making 
and po 
had me 
in the 
element 
which 

formed, 
part of 


Expe 
sufficier 
Montrez 
landed | 
be nuga 
Americ: 
port for 
Liverpo 
the othe 
insuran 
and fre 
lighthon 
and Qu 
feet, du 


Befo 
been p! 
done to 
rence. 


becoming the 
eaboard. The 


e divided by 
ne commercial 
ut ill prepared 
shannel by the 
iced ; and the 
kes Erie and 
er Canada the 
| for military 
anada, proved 
rected to the 
eat lakes, 


rdering on the 
‘om all parts 
sion of com- 
ation between 
isurrection in 
years elapsed 
taken under 
r with Lower 
cir guarantee 
yement of the 
» obviate the 


and Montreal. § 


| the Province 
eased outlay, 
erican wheat, 
colonial, thus 


United States § 


reat lakes was J 
al by the State | 
success, the | 


23 


The canal system of Canada was, in a great measure, com- 
pleted in 1846, though improved and extended since ; and she 
then possessed a navigation for vessels of 800 tons from the ocean 
to Lake Ontario, and of 400 tons to Lakes Erie, Huron and 
Michigan. But the repeal of the corn laws--an admittedly 
necessary measure---then supervened, and the Province found 
itself subject to a debt of 20,000,000 dollars---possessing the most 
magnificent canals in the world, but without any trade to support 
them except her own---debarred by the navigation laws from 
making them useful to foreign vessels---and opposed to the wealthy 
and powerful influences of New York, and the connections they 
had meantime formed in the west. In 1849, the legal difficulties 
in the way of trade were finally removed ; but ere this, a new 
element had been developed through the construction of railways, 
which tended to maintain trade in the channels it had already 
formed, and which could only be met by similar efforts on the 
part of Canada, | 


Experience had, however, fully demonstrated that it was not 
sufficient to prove that produce could be moved from the West to 
Montreal at one-half the charge to New York ; it required to be 
landed in Liverpool at less cost, or the whole previous effort must 
be nugatory. New York was the great commercial emporium of 
America ; it possessed an enormous commerce ; it was the chosen 
port for emigration ; and from all these causes, ocean freights to 
Liverpool were reduced to a minimum. The St. Lawrence, on 
the other hand, was reported as a most dangerous navigation ; 
insurance was very high, from the inferior character of the ships, 
and from the river and gulf not being properly provided with 
lighthouses ; and the shoals of Lake St. Peter, between Montreal 
and Quebec, limited the trade to vessels drawing not over 11} 
feet, during the summer low water. 


Before proceeding to state how far railway communication has 
been provided for the country, I will briefly state what has been 
done to remove the difficulties in navigating the River St. Law- 
rence. Numerous and excellent lighthouses have been built, the 


PEEL I RAEN TORRE LOAM AI 


} 
t 
% 
‘ij 
i 
% 
iy 
. 


24 


system of pilotage has been revised and improved, tug-boats of 
great power have been furnished to the trade, at very moderate 
rates, and the depth of water between Quebec and Montreal has 
been incrcased by dredging, to permit the passage of vessels. 
drawing 18 feet 6 inches. 


The result of these measures has undoubtedly been most bene- 
ficial, and is shewn by the rates of insurance now being only in 
excess of those from New York during the early and late periods 
of navigation, while the increased capacity of the vessels in the 
trade has considerably reduced freights. 


In addition to the natural obstacles to be overcome, and the 
competition with the United States which had to be encountered, 
Canada also found her efforts most seriously weakened through 
the policy of the Imperial Government, in subsidising the Cunard 
line of steamers to Boston and New York ; which by reducing 
freights to, and facilitating intercourse with these American cities, 
offered indirectly a bounty, to the extent of the subsidy, in their 
favour, and against the route vid the St. Lawrence. The original 
establishment of this steamship line was unquestionably of great 
benefit, but the persistent renewal of the contract, when the 
necessity for it had ceased, and when its injury to Canada had 
been demonstrated, is a grave cause of complaint, and has forced 
upon Canada the adoption of measures for the maintenance of 
direet intercourse .with Great Britain, carrying on her own trade 
through her own waters, and by her own ships. 


To remedy the evil effects of the policy of England, Canada 
has been obliged to subsidise a weekly line of ‘steamships of her 


own, at an expense of £45,000 per annum, and it is a subject of | 


the highest gratification to know, that the advantages of the St. 
Lawrence xuute to Liverpool are at length being thoroughly under- 
stood and appreciated. It is now proved that the ocean voyage 
from the St. Lawrence, upon the average of twenty-six passages: 
in 1859, westward from Liverpool to Quebec, has been only 
eleven days and five hours ; and irom Quebee to Liverpool, ten 


days and 
than has 
sively est 


Until tl 
that the 
to her a | 
ways te 
immedia 
proportio 
evident th 
intercour, 
balance 
season 0 
her unriv 
therewit 
large out 


In und 
through 
ocean, th 
its own 
inducemé 
directed 1 
success | 
details, v 


the Gove: 


In 184! 


| by the Ps 


miles in 


® Northern 


Grand T) 
the effect 
and the ¢ 
Line of I 


§ Trank Li 


d, tug-boats of 
ery moderate 
| Montreal has 
ge of vessels. 


nN most bene- 
being only in 
d late periods. 
vessels in the 


me, and the 
- encountered, 
rened through 
ig the Cunard 

by reducing 
nerican Cities, 
sidy, in their 

The original 
ably of great 
st, when the 
» Canada had 
nd has forced 
intenance of 
ler own trade 


land, Canada 
nships of her 


s a subject of | 


ges of the St. 
ughly under- 
ocean voyage 
1X passages: 
jas been only 
siverpool, ten 


25 


days and three hours ; these results showing a better average 
than has ever before been made across the Atlantic, and conclu- 
sively establishing the superiority of the Canadian route. 


Until the introduction of railways, it was confidently believed 
that the completion of the canal system of Canada would secure 
to her a large share of the western trade ; but not only did rail- 
ways tend to retain the trade in existing channels, but their 
immediate effect was to divert from the St. Lawrence a large 
proportion of the trade of Western Canada itself. It became 
evident that the facilities thus afforded for rapid and uninterrupted 
intercourse with the Atlantic cities, would more than counter- 
balance the greater cheapness of the St. Lawrence during the 
season of navigation, and that unless Canada could combine with 
her unrivalled inland navigation, a railroad system connected 
therewith, and mutually sustaining each other, the whole of her 
large outlay must for ever remain unproductive. 


In undertaking the construction of a railway system passing 
through Canada, which should connect the great lakes with the 
ocean, the Province did not propose to effect this entirely through 
its own resources ; the Legislature only sought to offer such 
inducements to capitalists as might cause their attention to be 
directed to Canada, believing that such works as railways, the 
success of which is almost wholly dependent upon attention to 
details, were better under private management than under that of 
@ the Government. 


= 6In 1849, an Act was passed pledging a 6 per cent. guarantee 
§ by the Province on one-half the cost of all railways of 75 miles 
miles in extent. And under this Act, the Great Western, the 
a Northern, and the St. Lawrence and Atlantic, (now part of the 
Grand Trunk) were commenced. Subsequently, in 1852, fearing 
the effect of an indiscriminate guarantee, this law was repealed, 
and the guarantee of one-half the cost confined to one Main Trunk 
§ Line of Railway throughout the Province. In 1852, the Grand 
Trank Line from Montreal to Toronto, and from Quebec to Riviére- 


\ 
} 
| 
f 
i) 
y 


SS AE ae 


doar ome Sr igse eg OTs ae 


Sonoma 


= ae atin emmy 


26 


du-Loup, was incorporated as part of the Main Trunk Line, with a 
stipulated advance by way of loan of £3,000 per mile, the line 
from Quebec to Richmond having already been commenced as 
part of the Main Trunk Line under the original Act. In 1853, 
Acts were passed providing for the amalgamation of all the com- 
panies forming the Main Trunk Line, with powers to construct 
the Victoria Bridge, connecting the lines west of Montreal with 
those leading to Quebec and Purtland, and also authorizing the 
lease, in perpetuity, of the American line, connecting the Canadian 
railway system with the ocean at Portland, U. S., which, from its 
admirable harbour, and from being the nearest port to the St. 
Lawrence, was selected as the point through which the winter 
trade of Canada could be most advantageously carried on. This 
city is, therefore, now the Atlantic terminus of the Canadian 


railway system in winter, and has been adopted as the port to ff 


which the Canadian line of steamships ply while the navigation 
of the St. Lawrence is interrupted. Efforts have been repeatedly 
made, as well by Canada as by New Brunswick and Nova 
Scotia, to induce the Imperial Government to promote the 
extension of the Grand Trunk Railway to some colonial winter 
port, but without success; and it is as yet wholly beyond the 
power of the Provinces, unaided, to construct a line which is 
more valuable on national than on commercial grounds. 


The result of the legislation to which allusion has been made, 
has been the formation of the Grand Trunk Railway Company, 
whose gigantic works are at length on the point of completion ; 
and of this company it may be truly said, that, comprising 1,112 
miles of rail, of which no less than 1,092 miles are strictly a 
trunk line, constructed in the most permanent manner, and con- 
necting the American railway system west of the great lakes with 


‘ the ocean, at Portland in winter, and at- Montreal, Quebec and 
Riviére-du-Loup in summer, it presents, probably, the most com- | 
plete and comprehensive railway system in the world; and, taken 


in connection with the unequalled inland navigation of the St. 


Lawrence, it cannot fail to attract a large share of the vast and § 


increasit 
vince of 
cation. 


The d 
enterpris 
the valu 
page of 
come to 
were pa 
over the 
compan) 
of the st 


In ade 
have wi 
railway 


The Gre 
The No 
The Bu 
And oth 

an 
The Gre 


Thus 
operatio 
charge t 
receivec 
will, it i 
which i; 
Victoria 
traffic f 
Canada 
gation i 
railway 
it is bel 


k Line, with a 
mile, the line 
ommenced as 
t. In 1853, 
of all the com- 
s to construct 
ontreal with 
thorizing the 
the Canadian 
hich, from. its 
port to the St. 
the winter 
ied on. This 
he Canadian 


le navigation 
en repeatedly 
ick and Nova 
promote the 
lonial winter 
ly beyond the 
ine which is 
nds. 


is been made, 
ay Company, 
f completion ; 
aprising 1,112 
3 are strictly a 
ler, and con- 
eat lakes with 

Quebec and 


the most com- | 
\d; and, taken § 


tion of the St. 


’ the vast and = 


as the port to J 


27 


increasing traffic of the west, while it affords to the whole Pro- 
vince of Canada the greatest possible facilities for intercommuni- 
cation. 


The difficulties attendant on the prosecution of this immense 
enterprise, arising from the Russian war, and consequent rise in 
the value of money, induced the Legislature to prevent the stop- 
page of works so essential to the prosperity of the Province, to 
come to the relief of the company, and in 1856 and 1857, Acts 
were passed giving the private capital of the company priority 
over the provincial first lien of £3,111,500. By this measure the 
company were enabled to raise additional funds, and the wisdom 
of the step is now seen in the full completion of the undertaking. 


In addition to the Grand Trunk Railway, the last ten years 
have witnessed the completion of the following additional lines of 
railway in Canada : 


The Great Western. ....cee ccccccccscccsccee+eee 307 miles, 
Whe NOMUGH bss aeecescereseteheveteerceccsse OF * 
The Buffalo and Lake Huron........ceccscceeeee 159 &* 
And other minor lines of a more local character, 
amounting in all to.....scccecee cocccccceee S10 “ 
The Grand Trunk... scssesesecscecceccccccscces 1112 


Thus a total of 2,093 miles have been constructed and put in 
operation in Canada within the time stated ; while the present 
charge to the Province connected with those railways which have 
received public aid, is £4,161,150, or £249,669 per annum, which 
will, it is hoped be speedily relieved by the success of the system, 
which is now only fairly connected by the completion of the 
Victoria Bridge. Reasonable time must be allowed for diverting 
traffic from other channels ; but the result cannot be doubtful, as 
Canada now possesses, not merely the most perfect inland navi- 
gation in the world, but also, in connection with it, a system of 
railways certainly unequalled on the American continent, or even, 
it is believed, in Europe. 


28 

Through the Canadian steamship line, the Grand Trunk is now 
recognized, even by the United States Government, as the shortest 
and best route for their south-western and western mails, than 
which no better evidence could be offered of the wisdom of the 
policy so persistently followed by every successive legislature in 
Canada for many years. The American cities on the great lakes 
are now opening a direct trade through the Canadian waters with 
Europe, more than twenty vessels having this year passed through 
our canals for English ports ; and the time is not distant when 
the full advantages of the St. Lawrence, as the great route from 
the interior of the continent to the ocean, will be fully recognized. 


In the prosecution of the policy which is now at length 
approaching its final, and, it is believed, successful issue, the 
great bulk of the public debt of Canada has been contracted. 
Enough has been retained out of ordinary revenue to cover what 
may be termed purely local works, expenditure upon which has 
long since ceased, and the present indebtedness will be found 
fully represented by the great public works of which a sketch has 
now been given. 


The direct debt of Canada, including advances to railways, is 
£9,677,672, and after deducting the sinking fund for the redemp- 
tion of the Imperial Guaranteed Loan, amounts to £8,884,672, and 
the payments on account of the public works of the Province, 
without reckoning interest, have been as follows : 


Canals, lighthouses and other works connected with 
the development of the navigation of the St. 


Lawrence, represent....ccccsccscsecccccces £3,962,900 
Railway advances,....- eeeoceevvseeeer-taovneseevees 8 4,161,150 
Roads and bridges, and improvement of rivers.... 138,350 

£8,862,400 


The public of England can now judge how far the expenditure 
of Canada has been reckless and unwise ; or, whether it has not 


been inc 
was whd 
have bee 


Before 
proper I 
Bonds, ¢ 


These 
by the 
The obje 
terms th 
vince is 
and has 
either p 
crisis in 
the Prov 
the inte 
been key 
been thu 
upon the 
far as re 
redeem 
indebted 


Meas 
which v 
hold lar, 
tional, I 


It nox 
the: posi: 
and I a1 
prevails 
the imp 
based u 
with in) 


Trunk is now 
as the shortest 
m mails, than 
isdom of the 
legislature in 
he great lakes 
n waters with 
assed through 
distant when 
t route from 
y recognized, 


w at length 
ul issue, the 
Mm contracted. 
0 cover what 
m which has 
will be found 

a sketch has 


) railways, is 
‘the redemp- 
884,672, and 
he Province, 


£3,962,900 
4,161,150 
138,350 


£8,862,400 


expenditure 
er it has not 


29 


been incurred for objects in which the prosperity of the country 
was wholly bound up, and which fully justified the sacrifices that 
have been made to attain them. 


Before quitting the subject of the present debt of Canada, it is 
proper I should advert to the outstanding Municipal Loan Fund 
Bonds, amounting, on Ist December, 1859, to £1,920,160. 


These bonds are issued upon the security of a fund constituted 
by the municipalities, who have become borrowers to this amount, 
The object was to secure on their united credit loans on better 
terms than they could obtain as individual borrowers. The Pro- 
vince is in no way guarantee for the fund, but acts as trustee, 
and has never pledged the general revenue for the payment of 
either principal or interest. Owing, however, to the commercial 
crisis in 1857, and the bad harvest of that and the following years, 
the Province has made large advances to enable the fund to meet 
the interest due to the bondholders, with whom faith has thus 
been kept by the several municipalities. But the plan having 
been thus found to work badly, and to entail unexpected charges 
upon the general revenue, the Act was repealed last session, so 
far as related to further loans, and the Government authorized to 
redeem the outstanding debentures, and to hold them against the 
indebted municipalities. 


Measures are now been taken for the redemption of this debt, 
which will be the more easily effected, as the Government already 
hold large amounts of these bonds in trust for the special educa- 
tional, Indian and other trust funds. 


It now only remains for me to state the commercial policy, and 
the position of the trade and finances of the Province of Canada ; 
and I am the more desirous of doing so, as great misapprehension 
prevails in England on these points, and the steps called for by 
the imperative dictates of honor and good faith are represented as 
based upon a return to an unsound commercial policy, and fraught 
with injustice to our fellow-subjects in Great Britain. 


] 


i 


Re 
vb 
| 
on 
AY 
:) 
oh 
| 
: 
i 
| 
i 
Pe 
q 


: 
| 
‘ 
§ 
i 
f 
hs } 
; 
i 
| 
i 
i 
} 
¢ 
tj 
if 


REE er 


PITAL ESD 
ee 


ene 


30 


Canadian statesmen of all parties have invariably adhered to 
the faithful and punctual discharge of the obligations of their 
country ; they have never swerved from the principle, that what- 
ever may be the faults or follies of their Government or Legislature, 
the public creditor should not suffer; and supported by the 
unanimous voice of the country, Parliament has never hesitated 
to provide by taxation for the necessities of the State. 


The commercial crisis of 1857, following the reduction of rail- 
way expenditure on the completion of the greater part of the 
works, and accompanied by a deficient harvest, caused a serious 
falling off in the revenue of that year ; and this was succeeded, 
in 1858, by a still greater failure of the crop, and, consequently, 
even more depressed condition of trade. Attendant upon this 


state of things, and as if to tax the energies of the people to the | 


utmost, it became necessary, in 1857, to assume the payment of 
interest on the railway advances, with the exception of the Great 
Western of Canada, amounting to about £200,000 per annum, 
and also to advance the interest upon the municipal debt, amount- 
ing to about £100,000 per annum. 


Dependence could partly be placed upon a revival of trade to @ 


restore the revenue to its former point ; but this would afford no 


means of meeting the future railway and municipal payments ; | 


and Parliament had to choose between a continued system of 
borrowing to meet deficiencies, or an increase of taxation to such 
amount as might, with economy of administration in every branch 
of the public service, on a revival of trade, restore the equilibrium 
of income and expenditure. 
open ; and that was, to exact the terms upon which the railway 
advances were made ; and to leave the holders of the municipal 
bonds to collect their interest, under the strict letter of the law. 


It is true that another course was | 


By these steps Canada would certainly have relieved herself from | 


the pressure of increased taxation, and might have escaped the 
reproaches of those who blame the increase of her customs duties. 
But it would have been at the expense of the English capitalists 
who had plaeed their faith in the fair treatment of her Govern- 


ment an 
tion for 
to admi 


The 
and pro 
no othe 
produce 
support 
coming 
1838, w 
the ha 
£500,00 
policy 
maintail 
within 
the expe 
he has n 
the expe 
been net 


It is, | 
so far fr 
in accor 
and in e 
showing 
Canada 


The p 


i tive unti 
= in harm 


Great B 
in 1854, 
by Canz 
with the 
place in 


of 1841 


bly adhered to 
tions of their 
ole, that what- 
or Legislature, 
orted by the 
1ever hesitated 
e. 


iction of rail- 
ater part of the 
used a serious 
as succeeded, 
consequently, 
Jant upon this 


e people to the | 


he payment of 
n of the Great 
) per annum, 
| debt, amount- 


rould afford no 


ued system of 
xation to such 

every branch 
e equilibrium 


her COUrFSE WAS §& 


the railway 
he municipal 
ter of the law. 


bd herself from ‘ 


p escaped the 
stoms duties. 
ish capitalists 
her Govern- 


al of trade to @ 


al payments ; | 


31 


ment and Legislature ; and it would have been but poor consola- 
tion for them to know, that, through their loss, Canada was able 
to admit British goods at 15 instead of 20 per cent. 


The writer has been reproached in this country as the author 
and promoter of a protective policy in Canada. To this he makes 
no other reply than that the commercial measures which have 
produced the results he is about to state, have always had his 
support while a member of the Provincial Parliament ; and 
coming into office as finance minister of the country in August, 
1858, with an exhausted exchequer, in face of a serious failure in 
the harvest, and with a positive deficiency of no less than 
£500,000 in the revenue for 1858, he rests the defence of his 
policy upon the fact, that the present Government of Canada has 
maintained the credit of the country unimpeached, and has, 
within less than eighteen months, so far succeeded in reducing 
the expenditure and increasing the revenue of the Province, that 
he has now the satisfaction of stating, that it appears certain that 
the expenditure of the year now closed, will be found to have 
been nearly, if not quite, within the income. 


It is, however, contended that the commercial policy of Canada, 
so far from being opposed to that of the mother-country, has been 
in accord with it, so far as differing circumstances would permit ; 
and in evidence of this position, a statement is herewith appended, 
showing the total imports, duty, and free goods imported into 
Canada since the Union. 


The policy of the mother-country was protective and discrimina- 


m tive until 1846, and that of Canada was made, as far as practicable, 
sin harmony. Differential duties in favour of the direct trade with 


Great Britain existed till 1848, when they were repealed. And 
in 1854, the principles of free trade were still more fully adopted 
by Canada in the legislation connected with the reciprocity treaty 
with the United States. The repeal of the navigation laws took 
place in 1849. The policy of Canada has thus, at three periods 

of 1841 to 1848, 1849 to 1854, and 1855 to this date, followed 


32 


that of Great Britain. Our markets have been thrown open on 
equal terms to all the world ; our inland waters are navigated by 
foreign vessels on the same terms as by Canadian ; the necessaries 
of life entering into the ordinary consumption of the people have 
all been made free ; our vast timber and ship-building interests 
have been thus developed, and our fisheries encouraged ; and, as 
a‘general principle, all raw materials have also been admitted free. 


The analysis of the staternent in the appendix gives some 
remarkable and instructive results. For the eight years from 
1841 to 1848, during which the protective policy existed, the total 
imports of Canada, were £22,638,348 ; the total duty collected, 
£2,308,499 ; and the total free goods, £509,495. The averages 
being £2,829,793, £288,545, and £63,687 ; the duty being thus 
about 10} per cent., and the free goods only 2} per cent. of the 
whole imports. 


For the next period of six years, to the passing of the reciprocity 
Acts, and general adoption of more liberal views---1849 to 1854--- 
the total imports, duty, and free goods, were respectively, 
£29,429,934 10s., £3,937,292 11s., £2,012,368 9s. ; averaging, 
£4,904,988 10s., £656,215, and £335,395 per annum ; the duty 
being thus about 13} per ent., and the free goods nearly 7 per 
cent. of the total imports. 


For the last period of four years, from 1855 to 1858, the follow- 
ing results are shown : Imports, £30,447,879 ; duty, £3,152,281; 
free goods, £8,868,250. The annual averages having been 


£7,611,970, £788,070, and £2,217,070 ; the duty being 10} per j 


cent., and the free goods 29 per cent. of the imports. 
The following comparative result appears : 


1841 to 1848, average total imports, £2,829,793 

1849 to 1854 6 sé 4,904,988 

1855 to 1858 sg 86 7,611,970 
1841 to 1848, duty, 10} per cent Free Goods, 2} per cent. 
1849 to 1854, « 131 « oF « 
1855 to 1858, “ 10, « OF; 5 QE a 


-Thes 
of Cans 
trade, n 


draw ¢ 


after ste 
above ¢ 
to mak 
which | 
followi: 
borne |; 
the Cus 


1858— 


From 7th 


The | 
conside 
true th 
protecti 
the Gov 
taxatiol 
pelled « 
more at 
s0 as I 
manufa 
Govern 
to obtai 
to do 
additio; 
and it 
Govern 
meet th 
the pro 


33 


hrown open on 
e navigated by 
the necessaries 
he people have 
ilding interests 
aged ; and, as 
admitted free. 


‘These comparative statements abundantly prove that the policy 
of Canada, in its Customs duties, has neither been repressive of 
trade, nor onerous: upon the people. It is, however, necessary to 
draw attention to the fact that, from causes which will be here- 
after stated, the results for 1858, would somewhat differ from the 
above average, my predecessor in office having found it necessary 
to make a considerable addition to the Customs duties, by an Act 
which took effect on the 7th of August, 1858, which gave the 
following results for that particular year, and which must be 
borne in mind, when it is necessary to explain the nature of 
the Customs Act of:March, 1859. 


ix gives some 
ht years from 
isted, the total 
duty collected, 


The averages 1858—Imports to 7th August, £3,263,591. 


ty being thus Duty, £361,350 ............. Free Goods, £954,845. 

yer cent. of the Duty, 11 per cent............ Free Goods, 29 per cent. 

| From 7th August, to 31st December, under Tariff of 1858.—Imports, £2,711,448. 
Duty, £333,454 ............ Free Goods, £765,760. 
Duty, 124 per cent...........Free Goods, 284 per cent. 


the reciprocity 
1849 to 1854--- 
: respectively, 
8. ; averaging, 
im; the duty 
is nearly 7 per 


The fiscal policy of Canada has invariably been governed by 
considerations of the amount of revenue required. It is no doubt 
true that a large and influential party exists, who advocate a 
protective policy ; but this policy has not been adopted by either 
the Government or Legislature, although the necessity of increased 
taxation for the purposes of revenue has, to a certain extent, com- 
pelled action in partial unison with their views, and has caused 
more attention to be given to the proper adjustment of the duties, 
so as neither unduly to stimulate nor depress the few branches of 
manufacture which exist in Canada. The policy of the present 
Government in readjusting the tariff has been, in the first place, 
to obtain sufficient revenue for the public wants ; and, secondly, 
to do so in such a manner as would most fairly distribute the 
additional burthens upon the different classes of the community ; 


58, the follow- 
r, £3,152,281 ; 
having been 
eing 104 per | 


3 

B and it will undoubtedly be a subject of gratificatiou to the 
D Government if they find that the duties absolutely required to 
per cent. meet their engagements should incidentally benefit and encourage 


the production, in the country, of many of those articles which we 
3 


34 


now import. The Government have no expectation that the 
moderate duties imposed by Canada can produce any consider- 
able development of manufacturing industry : the utmost that is 
likely to arise is the establishment of works requiring compara- 
tively unskilled labour, or of those competing with American 
makers, for the production of goods which can be equally well 
made in Canada, and which a duty of 20 per cent. will no doubt 
stimulate. That these results should flow from the necessity of 
increased taxation, is no subject of regret to the Canadian Govern- 
ment, nor can it be alleged as any departure, on their part, from 
the recognized sound principles of trade, as it will shortly be 
shown that the Government were compelled to obtain increased 
revenue ; and it is believed that no other course could be relied 
on for this result than that adopted. 


The increase of taxation is never a popular step, and it may 
well be believed that no Government would adopt it without the 
strongest conviction that good faith demanded it. It is unpleasant 
enough to be exposed to attack in Canada for an unavoidable 
increase of duties ; but it is certainly ungenerous to be reproached 
by England, when the obligations which have caused the bulk of 
the indebtedness of Canada, have been either incurred in com- 
pliance with the former policy of Great Britain, or more recently 
assumed to protect from loss those parties in England who had 
invested their means in our railways and municipal bonds. 


The indirect public debt of Canada, including railway advances, 
in 1858, was £6,271,762, bearing 6 per cent. interest, which, 
prior to 1857, had not been a charge upon the revenue. In that 
year, as has been already stated, owing to the commercial crisis, 
it became necessary to make large payments upon it, and in 1858, 
almost the whole amount had to be met from the general revenue. 
In addition to the commercial depression, the harvest of 1857 
was below an average, and that of 1858 was nearly a total 
failure. It became manifest that the indirect debt must for many 
years be a charge upon the country, and Parliament was required 


to make 
and indi 
breach o 


pressure 
Canada 
in maki 
exigenci 
subsequeé 
will be 
passed. 


After s 
possible 
possible 
ture, an¢ 
economy 
£1,837,6 
being £1 
was ma 
a serious 
Governm 
required 
mend suc 
and that 
to borrov 
of trade ° 


lof 1858, 


recomme 
for a pos 


The C 
have im 
whereas 
The ne 
obtainin 
estimate 


ation that the 
e any consider- 
} utmost that is 
iring compara- 
with American 
» equally well 
will no doubt 
the necessity of 
nadian Govern- 
their part, from 
will shortly be 
tain increased 
could be relied 


, and it may 

t it without the 

It is unpleasant 

an unavoidable 
be reproached 

sed the bulk of 
rred in com- 
more recently 

and who had 
bonds. 


way advances, 
iterest, which, 
enue. In that 
mercial crisis, 
it, and in 1858, 
pneral revenue. 
arvest of 1857 

nearly a total 
must for many 
t was required 


35 


to make provision for it. The interest on the public debt, direct 
and indirect, thus required, in 1858, £636,667 ; and without flagrant 
breach of faith it could neither be postponed nor repudiated. The 
pressure had come suddenly and heavily upon the people of 
Canada ; but neither the Government nor the Legislature hesitated 
in making such provision as in their judgment would meet the 
exigencies, The Customs Act of 1858 was therefore passed, and 
subsequently, with the same objects in view, and others which 
will be hereafter explained, the Customs Act of 1859 was also 
passed. 


After subjecting the engagements of the Province to the strictest 
possible scrutiny, the Government were of opinion that it was 
possible to reduce the annual outlay on many items of expendi- 
ture, and their best efforts were therefore directed towards 
economy ; the ordinary expenditure in 1858 having been 
£1,837,606, and the estimate for corresponding service in 1859 
being £1,540,490. But after making every possible reduction, it 
was manifest that unless an increase of revenue could be obtained, 
a serious deficiency must occur in 1859. The opinion of the 
Government was, that having ascertained the probable amount 
required for the service of the year, it was their duty to recom- 
mend such measures to Parliament as would supply the deficiency, 
and that although during the crisis it might have been justifiable 
to borrow money for this purpose, it was no longer so. A revival 
of trade was confidently looked to, but owing to the bad harvest 


lof 1858, it could not be rapid, and it was deemed proper to 


recommend certain additions to the Customs duties, to provide 
for a possible diminution in our ordinary importation. 


The Cus ms Act of 1859 is evidently believed in England to 
have imposed very large additiunal taxation on imported goods, 
whereas in reality such was neither the intention nor the fact. 
The new tariff was designed certainly with the intention of 
obtaining an increased revenue of about £100,000 on the 
estimated importations of 1859, but the real increase was looked 
3* 


36 


for from a revival of trade ; the main object was to re-adjust the 
duties so as to make them press more equally upon the com- 
munity, by extending the ad valorem principle to all importation, 
and thcieby also encouraging and developing the direct trade 
between Canada and all foreign countries by sea, and so far 
benefiting the shipping interests of Great Britain—an object which 
is partly attained through the duties being taken upon the value 
in the market where last bought. The levy of specific duties, for 
several years, had completely diverted the trade of Canada in 
teas, sugars, &c., to the American markets, and had destroyed a 
very valuable trade which formerly existed from the St. Lawrence 
to the lower provinces and West Indies. It was believed that 
the completion of our canal and railroad systems, together with 


the improvements in the navigation of the Lower St. Lawrence, | 


justified the belief that the supply of Canadian wants might be 
once more made by sea, and the benefits of this commerce 
obtained for our own merchants and forwarders. Under this 
conviction, it was determined by the Government to apply the 


principle of ad valorem duties (which already extended to all: | 


manufactured goods), to the remaining articles in our tariff. The 
principal articles on which it was proposed to obtain additional 


revenue, were cotton goods, to be raised from 15 per cent. to 20 | 


per cent., and iron, steel, &c., from 5 per cent. to 10 per cent. 


This was the whole extent of increased taxation, and it was | 


expected to yield £100,000 additional. The changes in teas, 
sugars, &c., were all merely nominal, and as already explained, 
were proposed as being upon a more correct principle. The 
imports for the first three quarters of 1859, say to 30th Septem- 
ber—have been— 


Imports, £5,403,393 ; duty, £730,640 ; free goods, £1,594,468 ; 
the duty being 134 on the imports, and the free goods being 29 
per cent. of the whole. 


By this statement, it is shown that the increased rate of duty as 
compared with the tariff of 1858, as given previously, has only 
been from 12} to 13} per cent., which can scarcely be deemed 


A is only 


f per cen 


excessi' 
diminut 
verified, 
out as 


country 
close of 
as we a 
harvest 

that in t 
per cent 
9, were 


I can 
which fi 
1858, an 
cent. of 
duced a 
is remal 
the imp« 
to £5, 4¢ 
portion « 


I will 
the Gov 
of their 
unexpec 
subject ¢ 
remark 
1859, c 


when th 


not railv 


D re-adjust the 
bon the com- 
] importation, 
e direct trade 
, and so far 
object which 
pon the value 


ific duties, for | 


of Canada in 
d destroyed a 
St. Lawrence 
believed that 
together with 


ants might be 
lis: commerce 
Under this 
at to apply the 


tended to all: 


ir tariff. The 
ain additional 


er cent. to 20 | 
10 per cent. | 
n, and it was | 


nges in teas, 
dy explained, 
‘inciple. 
30th Septem- 


» £1,594,468 ; 
ods being 29 


ate of duty as 
usly, has only 
y be deemed 


St. Lawrence, | 


The § 


3 is only 13} per cent. ; while in the period from 1841 to 1848, 


m per cent.; and from 1849 to 1854, when it had only canals, but 


37 


excessive ; while so far from the apprehensions entertained of a 
diminution of imports and consequent loss of revenue being 
verified, in both cases the estimates of the Government are borne 
out as nearly as could be expected, considering the state of the 
country and its gradual recovery from depression. Until the 
close of the year, the comparison cannot fairly be made, inasmuch 
as we are only now beginning to benefit from our late good 
harvest ; but as an indication of the result, it may be stated, 
that in the case of cotton goods, which were raised from 15 to 20 
per cent., the importations for the first nine months of 1857-8 and 
9, were as follows : 


ROD 6 56 dks 4404.49 ob oO @eeeeeaene@@e28ee@ £89,993 
58,823 
88,844 


|, to e@eseeeeeo002800088080 @ 


1859.... eoeeeeeeceeveeeeeeneeveeene ne 


I can also point with satisfaction to the fact, that the proportion 
which free goods bear to the whole importation, is exactly that of 
1858, and of the average for the four previous years, viz: 29 per 
cent. of the imports ; indicating that the new tariff has not pro- 
duced any disturbance of trade, nor checked importations ; for it 
is remarkable that where so large an increase has taken place in 
the imports, as from £4,520,998, in the first nine months of 1858, 
to £5,403,393 5s.,in the corresponding period of 1859, the pro- 
portion of free goods to the whole remains the same. 


I will now proceed to indicate the causes which have induced 
the Government and Legislature of Canada to seek, in an increase 
of their Customs duties, the means of meeting the large and 
unexpected demands upon them. But before finally leaving the 
subject of the burdens upon the people of Canada, it is proper to 
remark that the rate of duty levied under the present tariff of 
1859, covering the cost of all our canal and railway expenditure, 


when the Province had neither canals'nor railways, it was 10} 


not railways, it was 13} per cent. If it were necessary to offer 


38 


an argument on the subject, it might be very easily shown that 
any increase of duty which has been placed on English goods, is 
quite indemnified by the decreased cost at which our canals, 
railways and steamships enable them now to be delivered 
throughout the Province, and that if the question were one of 
competition with Canadian manufacturers, the English exporter 
is quite as well off as befoe, while as compared with the 
American, his position is greatly improved. 


In proceeding to offer some observations upon the principle 
upon which taxation is imposed in Canada, I may remark that 
the views of those who cavil at the policy of Canada, seem to be 
based upon the assumption that free trade is both the principle 
and practice of Great Britain, and should be adopted by Canada, 
irrespective of its financial necessities. 


It certainly appears singular that Canada should be reproached 
with a departure from sound principles of finance, when, in order 
to pay her just debts, she imposes higher duties on the articles 
she herself consumes, when in England itself the same means are 
resorted to, and no less than £28,000,000 sterling obtained from 
Customs duties, and £17,000,000 from Excise. If in Great 
Britain, where such an enormous amount of realized wealth 
exists, it has only as yet been found possible to raise one-sixth of 
the revenue by direct taxation, it need require no excuse if 
Canada has to raise her revenue almost wholly by indirect means. 


Free trade, in the abstract, must be taken to mean the free 
exchange of the products of industry of all countries, or of the 
inhabitants of the same country, and it is perfectly immaterial 
whether that industry be applied to the production of a pound of 
sugar or tobacco, or of a tenpenny nail or a bushel of malt ; it is 
equally an interference with the principle to levy customs duties 
or excise on any. But it is, and probably will continue to be, 
impossible to abandon customs duties or excise as a means of 
reveriue ; they afford the means of levying large sums by the 
taxation of articles of consumption, distributing the burden in 


almost 
advant 
nity cq 
Great I 
make 
wants ¢ 
exists, 
require 
require 
the mo 
long ti 
our rev 


Adm 
for the 
obtaine 
like th 
interfer 
effected 
fiscal p 
that, wi 
legislat 
calcula 
that of 
materia 
total im 
and ar 
ships al 
cent. d 
per cen 
articles 
manufa 
are cha 


| while | 


&c., ar 
bulk a 
sugar @ 


+ shown that 
tlish goods, is 
ch our canals, 
be delivered 
were one of 
glish exporter 
red with the 


the principle 
ry remark that 
ja, seem to be 
the principle 
d by Canada, 


be reproached 
when, in order 
n the articles 
me means are 
obtained from 
If in Great 
alized wealth 
se one-sixth of 
no excuse if 
direct means. 


ean the free 

tries, or of the 
ly immaterial 
of a pound of 

of malt; it is 
stoms duties 

ontinue to be, 
a means of 

2 sums by the 
the burden in 


39 


almost inappreciable quantities, and in one respect have this 
advantage, that, if fairly imposed, each individual in the commu- 
nity contributes in a tolerably fair proportion to his means. In 
Great Britain it may be possible to adjust the taxation, so as to 
make realized property contribute more than it now does to the 
wants of the State ; but in a country like Canada no such resource 
exists, and it would be perfectly hopeless to attempt to raise the 
required revenue by direct taxation—we neither possess) the 
required machinery to do it, nor are the people satisfied that it is 
the more correct principle. Customs duties must therefore for a 
long time to come continue to be the principal source from which 
our revenue is derived. 


Admitting, therefore, the necessity of raising a certain amount 
for the wants of the State, and that such amount can only be 
obtained through Customs duties, the Government of Canada, 
like that of Great Britain, have to consider how that necessary 
interference with the true principle of political economy, can be 
effected with least disturbance to trade. And judging of the 
fiscal policy of the present Government by this rule, it is contended 
that, with some trifling exceptions, which must arise in all human 
legislation, the Customs duties are imposed in the manner least 
calculated to disturb the free exchange of Canadian labour with 
that of other countries. A large class of articles termed raw 
materials, are admitted free, amounting to 29 per cent. of the 
total imports. Another large class consisting of iron, steel, metals 
and articles entering into the construction of railways, houses, 
ships and agricultural implements, &c., are admitted at 10 per 
cent. duty ; leather, and partially manufactured goods, pay 15 
per cent. ; manufactured goods, made from raw materials, or 
articles paying 10 per cent, duty, are admitted at 20 per cent. ; 
manufactured goods, made from articles paying 15 per cent. duty, 
are charged 25 per cent., but this is exceptional, and very limited ; 
| while luxuries, comprising wines, tobacco, segars and spices, 

&c., are charged at rates varying from 30 to 40 per cent., but the 
bulk are of 30 per cent. Spirits are charged 100 per cent. 
sugar and molasses, pay 15 per cent. and 30 per cent. 


Tea, 


40 


The distribution of duties on the whole imports therefore stands 
thus : 


Duties. Imports. 
Bred GOvds: .'ycences ccnqeseecetepooscee esse O * 29 per cent. 
Goods paying 10 per cent............. oacccce 44 64,“ 
‘6 i. FEO Me” eyeserscteaeenen's te SG 64 
66 QE lV ecaeegus eat ecslenanes 61 41 « 
“ BF OD NE ncbe machin paw aie aneurin 13 a 
“6 “over 25 per cent., including Spirits 93 4 « 
Tea, Sugar and Molasses. ..........0e0e. oss Ob 12 «6 
100 =100 


The foregoing statement will show that if the attempt were] 


made to reduce the duty on manufactured goods paying 20 per 
cent., it would necessitate an advance on the other items, unless 
such reduction produced a corresponding increase in consumption 
to make good the deficiency. Assuming then that the duty were 
reduced from 20 to 10 per cent., it will not be contended that this 
reduction, though affecting the revenue one-half on these articles, 
would induce double the consumption ; on the contrary, it is 
believed that it would not affect the consumption at all, as is 


borne out by the statistics of previous years, and of the presenti 
It would then become necessary to meet the deficiency by} 


ear. 
fnarsancd duties elsewhere ; and in selecting the articles, it is in 
the first place impossible to touch the bulk of the free goods, most 
of which are free under the reciprocity treaty, and the remainder 
entitled to continue free according to sound principles of trade. 
Passing to the next class of 10 per cent. goods, it will not surely 


be contended that the scale of duty should be raised on quasif 
raw materials to a rate im excess of that imposed on manufactures. 


There is then nothing left but the articles paying over 25 per 
cent., and it must be observed that they form only 4 per cent. ol 
the imports, and pay 9} per cent. of the duties ; if, therefore, it 
‘were necessary to make good the deficiency arising from a reduc- 
tion of duty on manufactures, the proportion of duty to the wholef 
they would have to pay would be increased from 93 per cent. to 
40 per cent., and the average rate of duty on these articles, 


| readers 


instead 
nearly | 
such al 
and tha 
&c., it I 
those nc 
unfavou 


agricult 


Apart 
suggest, 
the reve 
the Prov 
duties is 
accordal 
tions in 
populati 
will be : 
ment, as 
possible. 


In the 


tional ga 
tively s 
only fu 
produce 
and cire 
removin 
many t 
Colonies 


I hav 
Canada. 
in every 
perly be 
of the de 


therefore stands 


Imports. 
29 per cent. 
64 66 
64 it 3 
41 “ 
1 6“ 
4 6c 
12 66 
100 


» attempt were 
Is paying 20 per 
er items, unless 
in consumption 
at the duty were 
itended that this 


mn these articles, § 


e contrary, it is 
n at all, as is 


d of the presenti 


e deficiency by 
articles, it is in 
free goods, most 
d the remainder 
iples of trade. 
t will not surely 


raised on quasiq 
n manufactures. 
g over 25 pelj 


ly 4 per cent. ol 
; if, therefore, it 
g from a reduc: 


ty to the wholej 


93 per cent. to 
these articles, 


41 


instead of $2 per cent., or thereabout, would be increased to 
nearly 130 per cent. It is scarcely necessary to point out that 
such an increase would be utterly incompatible with revenue, 
and that the result would be a financial failure. On tea, sugar, 
&c., it has been found impossible to maintain higher duties than 
those now imposed—as they are free in the United States, and 
unfavourable comparisons are even now instituted by our 
agricultural population. 


Apart from such modifications in detail, as experience may 
suggest, the Government of Canada believe that in order to raise 
the revenue imperatively required to preserve the good faith of 
the Province, and to maintain its institutions, the scale of Customs 
duties is not excessive, and that it has been adjusted in general 
accordance with sound principles of political economy. Reduc- 
tions in the scale of duties can only take place as the increasing 
population and wealth of Canada swell the importations, and it 
will be a subject of the highest gratification to the present Govern- 
ment, as well as to the Legislature, when such reduction is 
possible. 


In the foregoing pages I have endeavoured to give to English 


@ readers an idea, however imperfect, of the progress of constitu- 


tional government in Canada, and its fruits, during the compara- 
tively short period of ten years. I am aware that my remarks 
only furnish, as it were, an index to the volume ; but if they 
produce more inquiry and a stricter investigation into the position 
and circumstances of the Province, they may be the means of 
removing some misapprehension, and thus prove of service to the 


f many thousands in Great Britain, who anxiously look to the 


Colonies as their future home. 


I have sought to avoid all reference to political parties in 
Canada. We have our differences, and struggles for power, as 


in every other free country ; but these discussions, I think, pro- 
perly belong to ourselves, as from our own people the Government 
Canada stands at the bar 


of the day must receive their verdict. 
4 


42 
of public ‘opinion in England, ‘to be judged, not by the acts of 


any party, but as ‘a whole ; ‘and no public man, possessing any & 


claim to patriotism, would ‘seek, by parading our sectional 
difficulties‘and disputes, to gain position in ‘Canada, ‘through the 
disparagement of his ‘country and her acts in England. I will 
venture 'to'‘add only one remark, and that is called for ‘by an 
impression which I ‘find to exist as to the political course taken 
by our French Canadian brethren in Canada. ‘During the entire 
period from 1849, to the present day, the French Canadian 
majority from Lower Canada, has been represented fully in the 


Cabinet ; and with their active concurrence in the initiation and | 


progress of every measure, and supported by their votes in Par- 
liament, all the great reforms I have recited, have been carried. 


In conclusion, I venture to express-my conviction, that whatever 
may be the future destinies of Canada, her .people will .always 
value as their most precious right, the free and liberal institutions 
they enjoy, and will cherish the warmest sentiments of regard 
towards the mother-country, from whom they have received them. 
The future may change our political relations ; but I feel sure 
the day will never arrive when Canada will withhold her support, 
however feeble it maybe, from’Great Britain, in any contest ‘for 
the maintenance of her own position, as the foremost champion 
of civil and religious ‘liberty. : 


Lonpon, Ist January, 1860. 


1849 .., 
1850 ... 


| by the acts of 


yossessing any 


our sectional 
da, through the 
igiand. I will 
led for ‘by an 
al course taken 
aring the entire 
ynch Canadian 
d fully in the 


» initiation and | 


iy votes in Par- 
been carried. 


1, that whatever 


e will always 
eral institutions 


ments of regard § 


received them. 

but I feel sure 
old her support, 
ny contest for 
most champion 


43 
APPENDIX. 


Statement of the value of goods imported into Canada, with the 
amount of duty ‘collected thereon, from the year 1841, to 
30th September, 1859, inclusive ; ‘also, the value of free 
goods imported during the same time. 


Year. | Imports. | Duty. | Free Goods. 
£ s. d £ s. d. £ s. d, 
ee 2,694,160 14 6 225,834 7 10 146,268 17 8 
1842.......... | 2,588,682 13 2| 278,930 7 4 85,944 2 4 
$8AS... os actus 2,421,306 16 4} 241,572 9 0 13,526 18 0 
1844........ 4,331,050 17 4| 441,331 15 2 $3,666 10 4 
1845.......... 4,191,325 16 6| 449,960 1 7 59,061 17 4 
1846.......... 4,515,821 1 11 422,215'16 8 61,300 10 8 
Estimated ). 

1847......... 3,609,692 14 -H1 414,633 5 6 77139¢° 4 
1848.......... 3,191,328 5 10 334,029 8 9 92,978 0 0 
27,543,319 0 6 | 2,808,507 11 10 619,886 1 8 
1849 ......... 3,002,801 18 3 | 444,547 5 1 | 269,200 7 9 
1850 ......... 4,245,517 3 6 615,694 13 °8 294,138 7 2 
1851.......... 5,358,697 12 7| 737,439 0 2 | 425,671 5 9 
1852.......... 5,071,623 311 739,263 12 9 311,962 17 4 
TONG cansicees 7,995,359 1 11 1,028,67615 7 443,977 18 1 
 1854.......... 10,132,331 6 9 | 1,224,751 4 8 703,435 17 1 
35,806,420 6 1 4,790,372 11 11 2,448,381 13 2 
1855 ......... 9,021,542 7 3 881,445'12 6 2,596,388 138 8 
1856........ 10,896,096 16 2] 1,127,220 10 5 2,997,941 14 9 
ee | 9,857,649 11 9 981,262 15 11 8,101,976 1 7 
1858........ 7,269,631 15 0 845,347 7 7 2,093,403 10 0 
37,044,920 10 2] 3,835,276 6 5 | 10,789,705 0 0 

1859 to 30th 
September..| 6,574,128 5 0!  888,946:15 4 1,915,608 0 0 


Inspector General’s Office, 
‘Customs Department. 
Quebec, 22nd October, 1859. 


N. B.—In the foregoing pages, the above figures have been reduced ‘to their 
equivalent in sterling money, 


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